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Cash conversion is highly volatile, with OCF/NI swinging from 5.71 in 2025Q4 to -0.90 in 2026Q2, and free cash flow margin ranging from -11.7% to 19.6%, driven by working capital swings and a cumulative earnings-to-cash gap of $0.99B over ten quarters.
GE HealthCare Technologies Inc. (GEHC) cash flow statement — 6-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Cash from Operations | 1.42B | 1.99B | 1.95B | 2.1B | 2.11B | 1.61B | 1.69B |
| Operating CF Margin % | - | 9.64% | 9.92% | 10.75% | 11.52% | 9.14% | 9.83% |
| Operating CF Growth % | -638.53% | 1.9% | -7.14% | -0.57% | 31.49% | -4.74% | - |
| Net Income | 1.59B | 2.15B | 2.05B | 1.62B | 1.95B | 2.27B | 2.06B |
| Depreciation & Amortization | 461M | 578M | 580M | 610M | 633M | 625M | 630M |
| Stock-Based Compensation | 118M | 130M | 125M | 114M | 67M | 76M | 0 |
| Deferred Taxes | 398M | 0 | 531M | 743M | 563M | 600M | 652M |
| Other Non-Cash Items | -1.54B | -517M | -1.28B | -1.01B | -806M | -599M | -1.6B |
| Working Capital Changes | -54M | -357M | -59M | 22M | -293M | -1.37B | -52M |
| Change in Receivables | -402M | -216M | -150M | -171M | -440M | -1.16B | -257M |
| Change in Inventory | -264M | -142M | -81M | 111M | -402M | -435M | 100M |
| Change in Payables | 224M | 90M | 126M | -13M | 481M | 263M | -113M |
| Cash from Investing | -3.03B | -1.05B | -914M | -558M | -398M | -1.76B | 19.99B |
| Capital Expenditures | -522M | -482M | -401M | -387M | -310M | -248M | -237M |
| CapEx % of Revenue | 2.58% | 2.34% | 2.04% | 1.98% | 1.69% | 1.41% | 1.38% |
| Acquisitions | -99M | 0 | -313M | -147M | 0 | -1.48B | -78M |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -2.3B | -447M | -160M | 24M | -29M | -32M | 20.3B |
| Cash from Financing | -883M | 617M | -573M | -478M | -822M | -263M | -21.54B |
| Debt Issued (Net) | -118M | 967M | -423M | 1.14B | 8.2B | -12M | -16M |
| Equity Issued (Net) | -388M | -163M | 33M | 0 | 0 | 0 | 0 |
| Dividends Paid | -64M | -64M | -55M | -41M | 0 | 0 | 0 |
| Share Repurchases | -400M | -200M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -313M | -123M | -128M | -1.58B | -9.03B | -251M | -21.53B |
| Net Change in Cash | -2.52B | 1.62B | 387M | 1.05B | 890M | -451M | 143M |
| Free Cash Flow | 895M | 1.51B | 1.55B | 1.71B | 1.8B | 1.36B | 1.43B |
| FCF Margin % | 4.42% | 7.3% | 7.88% | 8.77% | 9.83% | 7.73% | 8.32% |
| FCF Growth % | -42.81% | -2.84% | -9.57% | -4.94% | 32.67% | -4.83% | - |
| FCF per Share | 1.97 | 3.27 | 3.38 | 3.74 | 3.97 | 2.99 | 3.14 |
| FCF Conversion (FCF/Net Income) | 0.56x | 0.95x | 0.98x | 1.34x | 1.10x | 0.72x | 0.12x |
| Interest Paid | 67M | 0 | 550M | 570M | 0 | 21M | 46M |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying GEHC stock.
GE HealthCare Technologies Inc. (GEHC) generated $1.99B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
GE HealthCare Technologies Inc. (GEHC) generated $1.51B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
GE HealthCare Technologies Inc. (GEHC) spent $482.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, GE HealthCare Technologies Inc. (GEHC) returned $64.0M to shareholders via cash dividends and spent $200.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Working capital volatility persists
Metrics are mathematically derived from official filings.
Cash Conversion Remains Highly Volatile
GEHC's operating cash flow to net income ratio swung from 5.71 in 2025Q4 to -0.90 in 2026Q2, as per quarterly filings, indicating significant earnings quality variability.
The OCF/NI ratio has been erratic, with negative readings in 2026Q2 and 2024Q2, suggesting that net income is not consistently translating into cash. This volatility likely stems from working capital swings and timing of collections, which investors should monitor closely.
Free Cash Flow Trajectory Shows Sharp Swings
GEHC's free cash flow margin ranged from -11.7% in 2026Q2 to 19.6% in 2025Q4, as reported in financial statements, highlighting a highly uneven FCF generation pattern.
The FCF margin has been inconsistent, with negative quarters in 2026Q2 and 2024Q2, while strong quarters like 2025Q4 and 2024Q4 show robust conversion. This suggests that FCF is heavily influenced by working capital timing and possibly one-time items, making the underlying trend difficult to discern.
Working Capital Swings Drive Cash Flow Variability
Working capital changes ranged from +$260M in 2025Q4 to -$478M in 2024Q2, as per quarterly data, indicating significant cash flow volatility from balance sheet movements.
The large swings in working capital, particularly in accounts receivable and inventory, appear to be the primary driver of the erratic operating cash flow. This pattern suggests that GEHC's cash conversion cycle is not stable, and investors should assess the sustainability of these swings.
Capital Expenditures Remain Moderate
GEHC's capital expenditures averaged around 2.3% of revenue over the last ten quarters, as per financial statements, indicating a relatively asset-light model for a medical equipment maker.
CapEx intensity is low compared to peers, which may indicate a mix of maintenance and growth spending. The moderate capital spending suggests that GEHC can generate substantial free cash flow when working capital is favorable, but the volatility in working capital remains a key risk.
Capital Deployment Focuses on Buybacks
GEHC allocated $400M to share repurchases in 2026Q2 and 2026Q1 combined, while dividends remained steady at $16M per quarter, as per reported figures.
The company has been actively buying back shares, which may indicate management's confidence in the business, but it also reduces cash available for other uses. The consistent dividend suggests a commitment to returning capital, but the buyback pace may be aggressive given the volatile cash flow.
Cumulative Earnings Outpace Cash Generation
Over the last ten quarters, GEHC's cumulative net income of $4.66B exceeds cumulative operating cash flow of $3.67B, as per financial statements, indicating a persistent gap.
The cumulative gap of nearly $1B suggests that earnings have not fully converted to cash, likely due to working capital build-up and other non-cash adjustments. This divergence warrants further investigation into the quality of earnings and the sustainability of cash flow generation.
What Could Invalidate the Base Case
The cash flow statement may obscure the impact of stock-based compensation and acquisition-related costs, which could overstate operating cash flow relative to true cash generation, as per reported figures.
While SBC is added back in operating cash flow, it represents a non-cash expense that dilutes shareholders. Additionally, acquisition-related costs and working capital timing could distort the true cash-generating ability. Investors should consider these factors when evaluating the sustainability of GEHC's cash flow.